Group 12 analyzed common CRM failures and provided recommendations to improve customer relationship management. Some key points: - CRM systems often fail to understand the types of relationships customers want or expect and instead treat customers like transactions. This can cause customers to feel ignored or betrayed. - Firms should use surveys and interviews to understand current relationship types in their portfolios and use technologies like web-crawling to gain more relational intelligence on customers. - Marketing, hiring, and processes need to be reoriented around relationships. New roles like "adversary managers" could help cater to different customer groups. - CRM data collection needs to shift from just economic metrics to capturing relationship data through expanded IT

1. 1
Group 12:

2. —JILL AVERY, SUSAN FOURNIER, AND
JOHN WITTENBRAKER
2

3. ONE MAN’S MEAT IS ANOTHER MAN’S POISON
Expectations-
•Just a transaction
•No need to develop a relationship
•Like a One night stand
Reality
•CRM tries to develop a relation and
as a result customer is lost
Expectations-
•Need a proper relationship
•Need to be listened to
•Should feel like a friend
Reality
•CRM ignores the customer
•Does not try to develop a
relation

4. SCHEDULED
PROMOTIONAL
MESSAGES
SHIFT IN TARGET
CUSTOMER
STANDARD
OPERATING
PROCEDURES AND
POLICIES
• Imagine you are sending some suggestions to your
favorite online store
• Instead of responding to your message, they just
sent you their promotional offers
•Its like they don’t want to develop a relation with
you
•But the company missed out the opportunity to
develop a relation like team mate or acquaintance
• Apparel store shifting from baby bloomers to
thinner customers
•customers felt disrespected and betrayed
•They felt that they have been replaced by someone
more beautiful
• Some policies create inconvenience to some
customers
•Such customers would like to have some flexibility
in the policies
•Companies that fail to recognise these requests
will lose these customers
COMMON SENSE IS NOT COMMON
CRM FAILURES

6. Firms must understand the types of relationships currently in their
portfolios by way of surveys and extensive interviews Eg:- Frito-Lay
Firms must understand the advantage of boosting the relational
intelligence of their CRM systems with the help of web-crawling and data
mining technologies
Listening to and capturing customers’ relationships and reactions to the
company’s various actions can help the firm convert it into viable
knowledge
LISTENING FOR SIGNALS

7. ADVANTAGES
• In determining which customers
offer most value
• Stronger, committed & more durable
bonds created
• Contribute to building market share
DISADVANTAGES
• Building and maintaining relationships
can incur heavy investments
• Any price change or change in terms
counts a betrayal in a close relationship

8. UNDERSTANDING THE RULES
• Rules help in managing customer relationships which advances strategic goals.
• They cover what the consumer and the brand will give to and get from their
relationship
• Rules help deliver on customers’ expectations and engineering their portfolio to
include an ideal mix of relationships from the firm’s perspective

9. BOLSTERING DESIRED RELATIONSHIPS
• Firms must reciprocate a customer’s desire for a relationship which proves
beneficial to the company Eg: Swatch
• Sometimes these relationships backfire. In case of General Mills posted a new rule
stating customers cannot sue them in case of any promotional mishaps. This
resulted in a lashout
• Companies desire relationships which prove beneficial to the company and have the
competency to provide the exchange relationship that the customer desires

10. SHIFTING CUSTOMERS TOWARD DESIRED
RELATIONSHIPS
• Customers expect adversarial relationships from companies
• Companies want to increase the proportion of close relationships in its portfolio in
order to build long-term value
• The rules in such kind of relationships can be bent to the customer’s wishes but not
too far or too fast

11. CHANGING GEARS
• Sales assistants adjusting their approaches in order to cater to a very specific group
of individuals
• Maintaining separate relationships with different customer groups so that each
group is catered to the fullest extent in their own unique way

13. A NEW ORIENTATION
• Problem starts by giving CRM databases to IT department or software consulting
companies who are having inadequate emotional intelligence and poor
understanding of psychology of relationships
• The optimal approach involves
• Reorganize marketing around relationships
• Create new roles for employees
• Expand the market umbrella

14. REORGANIZE MARKETING AROUND
RELATIONSHIPS
• Choosing a strategy to bolster, shift or changing gears in marketing by educating
their staffs, changing hiring practices, establishing appropriate incentives and
shaping processes around relationships
• Frito-lay’s 3 day training to educate on psychology of relationships
• Icelandic telecommunication firm Siminn implementation of 18 month program to
help every employee immerse in company’s relationship oriented strategy
• Eileen Fisher has created customer personas which reflect the type of relationship
with the customer alongwith rules and profitability associated with them

15. CREATE NEW ROLES FOR EMPLOYEES
• Lack of relationship role to take steps to bolster the relationship or manage various
type of bonds that company’s form with the brand and company
• Use of Adversary managers, employees with specialized conflict management and
negotiation skills
• Harley- Davidson to have better relationship with customer has made a Harley
Owners group(HOG) which spent an average 280 days on road with the customer

16. EXPAND THE MARKET UMBRELLA
• Relational intelligence that connects customer with the company especially in 2
areas: IT and Customer service
• IT departments could benefit from employees trained in the social sciences, such as
social psychology, clinical psychology, and family counselling
• Customer service is an important aspect in maintaining relationships.
• The practices of outsourcing customer service and paying people low wages to
deliver the customer service have standardized the CRM implementation followed
by the company

17. CONCLUSION
• CRM technology needs to be reoriented from collecting economic data to capturing
relationship data
• The need of the hour is data-driven empathy
• Big Data needs to be combined with relational intelligence to understand the kind of
relationships customers have or desire
• Marketing function needs to be reoriented around relational intelligence and
disseminated throughout the organization to realize the promise of Customer
Relationship Management

18. THANK YOU